Wednesday, March 25, 2020
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Facebook (NASDAQ:FB) (FB), Fidelity National Information Services (FIS) and American Express (AXP). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Facebook’s shares have outperformed the S&P 500 over the past six months (-10.6% vs. -17.3). The Zacks analyst believes that Facebook is benefiting from growth in Instagram Stories and Feed, and expanding user base in Asia Pacific.
The launch of Facebook View app, Facebook Pay, a simpler and faster Messenger for iOS app and more location control feature for Android users is a positive. However, Facebook expects ad-sales to be hurt by the coronavirus lockdowns despite a significant spike in traffic.
Moreover, increasing limitations in tracking user activity amid the growing privacy-related regulations and changes made in the mobile operating systems and browser platforms by Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL) as well as tools like the Off Facebook Activity controls are expected to affect top-line growth. Moreover, a persistent mix shift toward Stories is anticipated to weigh on ARPU.
(You can read the full research report on Facebook here >>>)
Shares of Fidelity National Information Services have gained 7.6% over the past year against the Zacks Financial Transaction Services industry’s fall of 4.5%. The Zacks analyst believes that the company remains well poised for growth backed by attractive core business with several ongoing initiatives.
Acquisition of Worldpay is likely to accelerate growth by expanding its presence in fast growing markets. The company recently raised run-rate synergy targets to $1.23 billion from revenue and cost savings by 2022. Further, increasing investment in mobile banking and innovative products is likely to support the company's growth.
However, the company remains exposed to persistently rising costs and consolidation in the banking sector. Also, unsustainable capital deployment activities remain a concern.
(You can read the full research report on Fidelity National Information Services here >>>)
American Express’ shares have lost 31.2% over the past three months against the Zacks Financial Miscellaneous Services industry’s fall of 35.8%. The Zacks analyst believes that due to COVID-19 outbreak, the company is witnessing weakness in spending volumes, which is likely to hurt its first quarter operating performance.
Its revenue growth is driven by a strong brand, continued efforts toward building business in new growth verticals, shift toward digital and a strong economy, which are driving consumer spending. Its strong balance sheet position and disciplined capital management are impressive.
However, the company's reward expenses have been increasing over the past many quarters, which weigh on margins. Cost of card member services has been increasing over the years, indicating higher engagement level across its premium travel services.
(You can read the full research report on American Express here >>>)
Other noteworthy reports we are featuring today include NVIDIA (NVDA), Advanced Micro Devices (NASDAQ:AMD) (AMD) and CSX Corp. (CSX).
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Solid GPU Adoption in Gaming, Datacenters Aids NVIDIA (NVDA)
Per the Zacks Analyst, NVIDIA is benefiting from rapid adoption of its GPUs in the gaming and data-center markets.
AMD Banks on Strength in Product Portfolio & Partnerships
Per the Zacks analyst, Advanced Micro Devices is benefiting from robust adoption of latest EYPC, Ryzen and Radeon processors.
Cost Cuts, Dividends & Buybacks Aid CSX Amid Coal Softness
The Zacks analyst is impressed by CSX's cost-reduction efforts and its measures to add shareholder value.
Robust Structural Heart Show Aids Boston Scientific (NYSE:BSX)
The Zacks analyst is bullish about the combined strength of WATCHMAN, LOTUS Edge positioning Boston Scientific well. The recently-closed BTG acquisition is another plus.
Debt Reductions, Randgold (LON:RRS) Acquisition Aid Barrick (GOLD)
While Barrick faces challenges from higher production costs, it should gain from its actions to cut debt and synergies of the Randgold buyout, per the Zacks analyst.
Diversification Aids Simon Property (NYSE:SPG) amid Virus Concern
Per the Zacks analyst, Simon Property's varied premium retail assets across the globe and solid balance sheet position will likely support growth. Yet, the coronavirus pandemic is a major concern.
Omnipod Pipeline & Expanding Market Access Aids Insulet (PODD)
The Zacks analyst is bullish about the Omnipod business which has lined up a clinical trial and subsequent launch of Omnipod Horizon. Further, continued market expansion of Omnipod buoys optimism.
New Upgrades
Clorox's (CLX) IGNITE Strategy Likely to Boost EBIT Margin
Per the Zacks analyst, Clorox has been benefiting from its cost-saving efforts, especially the IGNITE strategy. On the back of IGNITE, Clorox envisions EBIT margin expansion of 175 bps annually.
Western Digital (NASDAQ:WDC) Rides on High-Capacity HDD Adoption
Per the Zacks analyst, Western Digital is expected to gain from growing clout of higher capacity drives. Further, expansion of Ultrastar HDD family with capacities of 20 TB and 18 TB HDDs bodes well.
IT Project Investments, Lake City Contract Aid Olin (OLN)
Per the Zacks analyst, Olin's investments in the IT project will boost operational efficiency and provide cost savings. The Lake City contract will also drive profitability in its Winchester unit.
New Downgrades
Schlumberger's (NYSE:SLB) Weak Oilfield Service Activities to Ail
The Zacks analyst agrees that weak oilfield service activities in both North America and international markets will continue to hurt Schlumberger.
Noble (NBL) Hurt by Falling Oil Prices Amid Coronavirus Woes
Per the Zacks analyst Noble Energy (NASDAQ:NBL)'s near-term performance will be adverse impacted by the falling oil prices, which have forced the company to lower capital spending to preserve liquidity.
Rising Production Expenses to Hurt Cimarex's (XEC) Profits
Increasing production costs eating through Cimarex's income concerns the Zacks analyst. Moreover, slowdown of Mid-Continent operations will hurt the company's business.
undefined undefined
NVIDIA Corporation (NASDAQ:NVDA): Free Stock Analysis Report
Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
CSX Corporation (NASDAQ:CSX): Free Stock Analysis Report
American Express Company (NYSE:AXP): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Original post
Zacks Investment Research